Southern California Gas Co. (SoCal Gas) is a wholly owned subsidiary of Sempra Energy (Sempra). The ratings on Sempra Energy and its wholly owned utility subsidiaries San Diego Gas&Electric Co. (SDG&E) and SoCal Gas reflect the consolidated profile of the utilities and the unregulated ventures, which include energy trading, merchant generation, and energy-related investments in Mexico and South America. At this time, ratings do not reflect Sempra's LNG investments, where Sempra's investment is currently limited to land and permitting expenses. Regulation in California, which, among other things, mandates that the utilities maintain a 48% equity layer, provides sufficient insulation to separate the corporate credit ratings on the utilities from those of the parent and unregulated subsidiaries. SoCalGas is
